BUSINESS

MATHEMATICS
(BBQT 1013)
Chapter 2 :
Fractions and Percents
 LEARNING OUTCOME
In the end of this chapter, students will be able to:
[Link] types of fractions
[Link] a fraction to an equivalent fraction
[Link] and subtract fractions and mixed numbers
[Link] and divide fractions and mixed numbers
[Link] a decimal as a fraction and write a fraction as a decimal
[Link] a whole number, fraction, or decimal as a percent
[Link] a percent as a whole number, fraction, or decimal
[Link] the percentage formula to find the percentage
[Link] the percentage formula to find the base
[Link] the percentage formula to find the rate
[Link] the percentage proportion to solve problems
 FRACTIONS
• Part of a whole.
• One number over another.
• Above the line is the numerator.
• Below the line is the denominator.
• Denominator is number of equal parts.
• Numerator indicates how many parts.
 TYPES OF FRACTIONS
Proper Fractions or Common
Fractions
•numerator smaller than denominator
•value is less than 1

1 3 7 91
, , ,
2 4 13 100
 TYPES OF FRACTIONS

Improper Fractions
•numerator equal to or greater than
denominator
•value of 1 or more

3 9 125 13
, , ,
3 7 4 12
 TYPES OF FRACTIONS
Mixed Number
•Sum of a whole number and a fraction

3
17 seventeen and three-fifths
5

3
92,407 ninety-two thousand, four
4
hundred seven and three-fourths
 CONVERT MIXED NUMBERS
TO IMPROPER FRACTIONS
Step 1 Multiply the whole number by the
denominator of the fraction.
Step 2 Add the product to the numerator of the
fraction to find the new numerator.
Step 3 Keep the same denominator.
 EXAMPLE
Kara Oaks read the instructions that came with a new
microwave oven. She discovered that the opening in the
kitchen cabinet needed to be 25 3/4 inches wide by 16
1/2 inches tall in order to install the microwave oven.
Convert both of these mixed numbers to improper
fractions.

3 1
(a) 25 (b) 16
4 2
 CONVERT IMPROPER
FRACTIONS TO MIXED
NUMBERS
Step 1 Divide the numerator of the fraction by the
denominator.
Step 2 The quotient is the whole-number part of the
mixed number.
Step 3 The remainder is the numerator of the fraction.
Step 4 Keep the same denominator in the fraction part
of the mixed number.
 EXAMPLE
Convert the following improper fractions to mixed
numbers.
27 29 42
(a) (b) (c)
4 8 7
 WRITE A FRACTION IN
LOWEST TERMS
If both the numerator and denominator of a fraction
cannot be divided without a remainder by any number
other than 1, then the fraction is in lowest terms.

To write a fraction in lowest terms:

Find a number than can be divided without a
remainder into both the numerator and denominator.
 EXAMPLE
Write the following fractions in lowest terms.

15 33
(a) (b)
40 39
 ADD AND SUBTRACT LIKE
FRACTIONS
• Fractions with the same denominator are called like
fractions.
• Such fractions have a common denominator.
• Add (or subtract) the numerators.
• Place the result over the common denominator.
 EXAMPLE
Add or subtract.

3 1 5
(a)  
4 4 4

11 4
(b) 
15 15
 LEAST COMMON
DENOMINATOR
• Fractions with different denominators, such as 3/4
and 2/3, are unlike fractions.
• Add or subtract unlike fractions by first writing the
fractions with a common denominator.
• The least common denominator (LCD) for two or
more fractions is the smallest whole number that can
be divided, without a remainder, by all the
denominators of the fractions.
 FIND THE LEAST COMMON
DENOMINATOR
• Inspection. With small denominators, it may be
possible to find the least common denominator by
inspection.
• For example, the LCD for 1/3 and 1/5 is 15, the
smallest number that can be divided evenly by both
3 and 5.
 ADD AND SUBTRACT
UNLIKE FRACTIONS
Step 1 Find the least common denominator (LCD).
Step 2 Rewrite the unlike fractions as like fractions
having the least common denominator.
Step 3 Add or subtract numerators, placing answers
over the LCD and reducing to lowest terms.
 REWRITE FRACTIONS WITH
A COMMON DENOMINATOR
Step 1 Divide each denominator into the common
denominator.
Step 2 Multiply the result by the original
numerator.
Step 3 Place the result over the common
denominator.
 EXAMPLE
Add or subtract.
3 1 5
(a)  
4 2 8

9 3
(b) 
10 8
 EXAMPLE
2 1
Add 9 and 6 .
3 4
 EXAMPLE
A rubber gasket must extend around all four
edges (perimeter) of the dishwasher door
panel shown on the following slide before it
is installed. Find the length of gasket
material needed. Add 34 1/2 inches, 23 3/4
inches, 34 1/2 inches, and 23 3/4 inches.
EXAMPLE
 MULTIPLY PROPER
FRACTIONS
• Multiply the numerators.
• Multiply denominators.
• Write in lowest terms.
 USE CANCELLATION
• Any numerator can cancel with any
denominator as long as both are divisible
without remainder by the same number
other than 1.
 EXAMPLE
Multiply.

8 5
(a) 
15 12

35 32
(b) 
12 25
 MULTIPLY MIXED NUMBERS
• Change the mixed numbers to improper
fractions.
• Cancel.
• Multiply.
 EXAMPLE
Multiply.

3 2
(a) 3  8
4 3

3 1 3
(b) 1  3  1
5 3 4
 DIVIDE FRACTIONS
• Invert the divisor (fraction following the ÷)
• To invert a fraction, exchange the.
numerator and denominator.
• Multiply.
 EXAMPLE
Divide.

7 1
(a) 
8 4

25 15
(b) 
36 18
 DIVIDE MIXED NUMBERS
• Change mixed numbers to improper
fractions.
• Invert the divisor.
• Multiply.
 MULTIPLY OR DIVIDE BY
WHOLE NUMBERS
• Write the whole number as a fraction over
1.
• Multiply or Divide as usual.
 EXAMPLE
A cabinetmaker will
need 80 base-end
panels to complete a
job. If each panel is
34 1/2 inches in
length, how many
inches of oak
material are needed,
assuming no waste?
 EXAMPLE
To complete a custom-designed cabinet,
oak trim pieces must be cut exactly 2 1/4
inches long so that they can be used as
dividers in a spice rack. Find the number of
pieces that can be cut from a piece of oak
that is 54 inches in length.
 CONVERT DECIMALS TO
FRACTIONS
Decimal Read as Fraction
equivalent
6 3
0.6 six tenths

10 5
38 19
0.38 thirty-eight hundredths 
100 50
875 7
0.875 eight hundred seventy - 
five thousandths 1000 8
 CONVERT FRACTIONS TO
DECIMALS
• Divide the numerator by the denominator.
• Place a decimal point after the numerator.
• Attach zeros as necessary, until
• The Division produces a remainder of zero
or the desired degree of accuracy is
reached.
 EXAMPLE
Convert the following fractions to decimals.

1
(a)
8

2
(b)
3
 PERCENTS
• Similar to fractions and decimals, percents represent parts of a
whole.
• Percents (hundredths) mean parts out of 100.
• Written using a percent sign (%).
• For example 1% means 1 of 100 equal parts.
• The number 12% is read “twelve percent.”
 PERCENTS

al
on
cim

cti
Fra
De
12
12% = 12 out of 100 equal parts .12
100
25
25% = 25 out of 100 equal parts .25
100
50
50% = 50 out of 100 equal parts .50
100
 WRITE A DECIMAL AS A
PERCENT
• Move the decimal point two places to the right
• Attach a percent sign (%).

.75 = 75%
 EXAMPLE
Change the following decimals to percents.
(a) .625 (b) .0057 (c) .0018
 WRITE A FRACTION AS A
PERCENT
 Multiply the fraction by 100%.

4 400%
 100%   80%
5 5
 WRITE A PERCENT AS A
DECIMAL
 Move the decimal point two places to the left.
 Drop the percent sign (%).
 EXAMPLE
To calculate some insurance claims, an insurance
agent must change the following percents to
decimals.
1
(a) 35% (b) 50% (c) 325% (d) 37 %
2
 WRITE A PERCENT AS A
FRACTION
 Change the percent to a decimal.
 Write the decimal as a fraction in lowest terms.
 EXAMPLE
Even though smoking is believed to account for
1 of every 5 deaths in the United States, more
than 45 million Americans smoke. The bar
chart shows the percent of people in each age
group that smoke. Convert each percent to a
fraction and reduce to lowest terms.
 WRITE A FRACTIONAL
PERCENT AS A DECIMAL
 Change the fraction to a decimal followed by a
percent sign.
 Move the decimal point two places to the left.
 Drop the percent sign.
 EXAMPLE

The following percents appear in a newspaper

article. Write each fractional percent as a decimal.
1 3 5
(a) % (b) % (c) %
5 4 8
 SOLVING PERCENTAGE
PROBLEMS
 Identify the rate, base and percentage in percentage
problems.
 Use the percentage formula to find the unknown
value when two values are known.

P=RxB
 IDENTIFY THE RATE, BASE
AND PERCENTAGE IN
PERCENTAGE PROBLEMS
 In the formula P = R x B:
 “B” refers to the base which is the original
number or one entire quantity.
 “P” refers to percentage and represents a
portion of the base
 “R” refers to rate and is a number followed by
a % or percent
 EXAMPLE
The bar graph on the next slide shows the
unemployment rate by category in the midst of a
serious recession. Use the data provided to
estimate the number of unemployed teenagers out
of a total of roughly 32,000 working-age
teenagers in one city.
 TRY THIS!
 If 40% of the registered voters in a community of 5,600
are Democrats, how many voters are Democrats?
 2,240

 If 58% of the office workers prefer diet soda and there

are 600 workers, how many prefer diet soda?
 348
 TRY THIS!
 1700 dentists attending a convention last month
prefer fluoride treatments for preschoolers. That’s 4
out of every 5 dentists. How many dentists attended
in all?
 2,125

 80%, or 560, of our current clients take advantage of

our cash discount program for prompt payment. What
is our current client base?
 700
 TRY THIS!
 The plant foreperson reported that 873 of the 900
items tested met the quality control specifications for
production. What is the rate of acceptable items?
 97%

 In the new product focus group, 6,700 of the 8,375

customers rated the product as “very good” or
“superior.” What was the rate?
 80%
 INCREASE AND DECREASE
 Find the amount of increase or decrease in
percent problems.
 Find the new amount directly in percent
problems.
 Find the rate or the base in increase or decrease
problems.
 INCREASE

 Examples of increases in business applications

include:
 Sales tax
 Raise in salary
 Markup on a wholesale price
 DECREASE
 Some examples of decreases include:

 Payroll deductions
 Markdowns
 Discounts on sale items
 HOW TO FIND THE AMOUNT
OF INCREASE
 To find the amount of increase:
amount of increase = new amount – original amount

 Example:
Joe’s salary has been $400 a week. Beginning next
month, it will be $450 a week. The amount of increase
is $50 a week.
 HOW TO FIND THE AMOUNT
OF DECREASE
 To find the amount of decrease:
Amount of decrease = original amount - new amount

 Example:
Roxanne’s new purse originally cost $60, but it was on
sale when she bought it on Saturday for $39.99. The
amount of decrease (or markdown) is $20.01.
 PERCENT OF CHANGE
 The amount of change is a percent of the original or beginning
amount.

 Find the amount (increase or decrease) from a percent of

change by:
 Identifying the original or beginning amount and the

percent or rate of change.

 Multiplying the decimal equivalent of the rate of change by

the original or beginning amount.

 EXAMPLE
Your company has announced a 1.5% cost of living
raise for all employees next month. Your monthly
salary is currently $2,300. Starting next month, what
will your new salary be?
 TRY THIS!
 The property taxes at your business office will go up
5% next year. Currently, you pay $3,400. How much
will you pay next year?
 $3,570

 A wholesaler is offering you a 20% discount if you

purchase new inventory before the 15th of the month.
If your normal invoice is $3,600, how much would
you pay if you got the discount?
 $2,880
 FIND THE RATE OR THE
BASE IN INCREASE OR
DECREASE PROBLEMS
 Identify or find the amount of increase or
decrease.
 To find the rate of increase or decrease, use the
percentage formula: R = P/B.
 Rate = amount of change/original amount.
 To find the base or original amount, use the
percentage formula: B = P/R.
 Base = amount of change/rate of change.
 EXAMPLE

During the month of May, a graphic artist made a profit

of $1,525. In June, she made a profit of $1,708. What is
the percent of increase in profit?
 TRY THIS!
 A popular detergent cost $5.99 last Saturday, but
today the same detergent costs $7.50. What is the
rate of increase?
 25.2%

 Sales in the East Region were $10,800 in January

and dropped to $9,700 in February. What is the rate
of decrease from January to February?
 10.2%
- THE END -